Orco Property Group has announced the sale of the Radio Free Europe building in Prague to a subsidiary of the L88 Companies (www.l88llc.com), for what it describes as an overall transaction value of USD 94m, “which is at DTZ valuation after taking into account all taxes on the transaction.” At the closing L88 handed over $80m in cash, $2m in concessions and a $12m note convertible “into a 20% stake in the parent company of the entity acquiring the building.”
The companies have also created a strategic alliance to develop and build a broad based building platform for the U.S. Department of State. After successfully concluding the development and sale of the Radio Free Europe building, “Orco is pleased to enter into this transaction with the L88 Companies and looks forward to working with the L88 Companies in the development of premium standard buildings for the U.S. Government. The Strategic Alliance for this broad based platform is a natural progression for Orco as it looks to new development opportunities following its successful financial restructuring,” stated Jean-François Ott, OPG’s President & CEO. Salans advised the vendor in the transaction.